Now that valuation is playing a more prominent role in financial reporting, accounting rulemakers are wondering if companies need more guidance—or even a new standards-setting body—to steer the valuation process.
The Financial Accounting Standards Board has issued an invitation to comment on whether and how the market should get new guidance on conducting business valuations. The Board is wondering, for example, whether the market needs valuation guidance as it relates to financial reporting, how specific the guidance should be, how it should be developed, and even who should write it.
